Fears grow of CDO fire sale

CDOs

Downgrades of collateralised debt obligations (CDOs) have already wiped out much of the demand for mortgage securities on which issuers have relied for the past several years. Now fears are growing that investors in CDOs might begin to liquidate these vehicles, forcing a fire sale of assets that will further depress values. By mid December 2007, the credit ratings agencies had issued thousands of CDO rating downgrades with more than 2,000 CDOs downgraded in November alone. The effect of this on

To continue reading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an indvidual account here: